Taxpayers won't recoup £66bn from bank rescue
Friday 16 November 2012
Taxpayers are unlikely to ever recoup the £66bn spent saving Royal Bank of Scotland and Lloyds Banking Group from collapse, a committee of MPs has warned.
Margaret Hodge, chairman of the Commons Public Accounts Committee, said the sale of Northern Rock to Virgin Money earlier this year was a bad omen for the Government as it looked to wind down its holdings in both part-nationalised lenders.
Northern Rock was taken into state ownership almost five years ago following a run on the bank in 2007. The bank was eventually sold for £931m, leaving taxpayers nursing a £469m loss.
"There were only two bidders," Ms Hodge said. "The lack of competition does not fill us with confidence that the taxpayer will make a profit on the sale of the two banks which remain in public ownership. There is a risk that the £66bn invested in RBS and Lloyds may never be recovered."
The committee also criticised the role UK Financial Investments played in managing Northern Rock. The body, which controls taxpayers' stakes in banks, was meant to generate lending of £15bn from the lender but only managed £9.1bn before it was sold.
"It is vital that the final decisions on the wholly owned banks are made with value to the taxpayer taking precedence over speed of exit."
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 4 Tennis fan suing Australian Open organisers for 'failing to shade spectators' during Murray match
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Rob Lowe hits out at White House decision not to meet Israeli leader
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Winston Churchill: From accusations of anti-Semitism to the blunt refusal that led to the deaths of millions
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...